Many small business owners dream of scaling their businesses. However, to do so, they must position their businesses in an environment allowing them to grow without restriction.
When small business owners grow their businesses, they increase their revenue by increasing resources. However, when they scale their businesses, they strive to increase revenues without increasing costs and resources, such as customers, employees, capital, or technology.
Scaling a business requires hard work and determination. However, it is not mission impossible for small business owners.
It is important to remember that scaling a business cannot happen until growth occurs. Therefore, small business owners must first focus on growing their businesses before they can focus on determining ways to optimize that growth and scale them.
Here are six ways small business owners can scale their small businesses once growth has occurred:
1. Ensure job positions are maximized for efficiency and effectiveness
Small business owners should ensure each job position they create can positively impact as many areas of their businesses as possible. Each part should be able to interact with and benefit multiple departments within the industry. For example, a cashier position at a small business should handle checking people out and engaging with and taking part in customer service. When employees in one department can cross over and lend a hand to others, it helps everyone get their work done more efficiently and effectively. However, it is essential not to overwhelm employees. Small business owners must communicate to each employee that their primary responsibility is fulfilling the duties of their position. Once they have fulfilled these duties, they can jump in and help their coworkers.
2. Market to your loyal customers
Another great way small business owners can scale their businesses is by engaging their current customers. Entrepreneurs must increase revenues from their loyal customer bases to scale their businesses. One way they can do this is by optimizing their advertisements to connect with these customers. Small business owners must ensure their advertisements employ copy and imagery that play on the interests and needs of these individuals. These advertisements can help motivate loyal customers to come into the store and try a new product or service they ordinarily would not. Furthermore, these advertisements will also create a deeper connection between a small business and its current customers. This increases the likelihood they will return.
3. Prioritize customer service and open communication with customers.
Small business owners can also scale their businesses by placing an increased priority on meeting customer needs. First, entrepreneurs must ensure their employees provide excellent customer service. Customers want to feel as though the businesses they shop at care about them and want to meet their needs. Therefore, to increase the likelihood of customers returning to shop at their small businesses, small business owners must strive to help them resolve any problems they may face with their products or services. When small business owners take time to listen to customers and work with them toward a solution, it creates a deeper connection between them and their customers.
4. Practice open communication with customers
Furthermore, small business owners should also strive to communicate openly with customers. Customers should know what to expect from their businesses. For example, small business owners should make it a point to share any changes in hours or product and service offerings. This can be done effectively on their businesses’ social media profiles, websites, or email newsletters. Small business owners should also provide recommendations for alternative products and services to replace those that are being discontinued. This will keep customers informed about what is happening at each small business.
Furthermore, since they know what to expect from the company, it will increase the likelihood of them returning to repurchase its products or services. For example, if a customer shows up and the store unexpectedly closes or no longer has their favorite product or service, they will be disappointed. However, suppose these updates are provided in advance. In that case, customers will take it upon themselves to visit the store during its new hours. They will be more willing to try the alternative product or service that replaced their favorite.
5. Practice open communication with and between employees
Small business owners can also work toward scaling their businesses by openly communicating with employees. Business owners should encourage them to communicate openly with each other. For a business to run as efficiently and effectively as possible, constant, clear communication must be maintained. This communication ensures everyone is on the same page about what needs to be completed. The team is aware of their role in assisting in achieving that. Small business owners must openly communicate any changes to employees. They can more easily react and continue serving customers when they know this information. Furthermore, employees also must practice open communication with each other. This will allow them to request help and outline their expectations for each other, enabling them to work best together.
6. Promote and encourage a diverse flow of ideas and opinions.
Encouraging diverse perspectives is another way small business owners can work toward scaling their small businesses. When small business owners are brainstorming new products and services or looking to make a decision, they should ask their employees for their ideas and opinions. Each employee has a diverse background of experiences that helps inform their thoughts and opinions. This means each employee will view a situation a little bit differently. When all employees work together to brainstorm, solve a problem, or make a decision, they do so more thoroughly than if they each took on the challenge alone. Therefore, groupthink errors are prevented when diverse ideas and opinions are encouraged to mix. As a result, more creative ideas are formed quicker, boosting profits.
When setting out to scale a business, the most important thing a small business owner can remember is their goal is to grow revenues without growing costs.
Therefore, they must optimize their current resources to boost their profits. Furthermore, small business owners must keep an eye on their finances when scaling their businesses to ensure their costs are not drastically increasing with their revenues.
If you are a small business owner setting out to scale your small business, remember to take it one day at a time. You do not need to implement all of these steps at once. Instead, pick a few that make the most sense for your small business and work on them a little each day.
You’ve got this!
PaySmart is a payroll provider in Mechanicsburg, Pennsylvania, supporting small businesses in the Central PA region. We are dedicated to helping small businesses take care of their payroll needs. To learn more about how PaySmart may provide payroll solutions, please get in touch with us at 717-766-1777. Our New Client Concierge is waiting for you!